The increasingly fierce and dynamic business competition makes the plans of business people and companies forever not run smoothly and smoothly. Often this condition forces them to take off production or temporarily stop business activities to survive the market development.
Related to this, there is an important aspect in business legality, namely the Indonesian Standard Field Classification (KBLI) which functions to find out what licenses are in accordance with the level of business risk.
Now, when a business actor or company decides to off-produce business activities, there are two options to choose from, namely deleting the KBLI of the business activity that is currently stopped, or leaving it with the hope that it can be reopened in the future.
So, which is the best option to take? What are the terms and procedures? So that you don’t take the wrong step, check out the explanation in the following article.
KBLI at a glance
Before knowing whether or not a business that is temporarily closed needs to remove KBLI in OSS, it is necessary to first know what KBLI is.
One of the requirements for a business actor to obtain a Business Identification Number (NIB) as a sign of legality is to adjust the KBLI code.
KBLI is specifically regulated in the Central Statistics Agency Regulation No. 2 of 2020 concerning the Indonesian Standard Business Field Classification.
The KBLI is a classification system for classifying business activities. Through KBLI, it will be easy to classify between different business activities.
This code consisting of 4-5 numbers determines the business field of a company and will be recorded in the Online Single Submission (OSS) system, which can then be used by the company when it wants to register its business license in NIB or deed.
From KBLI, it will also be seen what business licensing obligations must be taken care of to carry out these business activities.
In addition to classifying business fields and facilitating business licenses, KBLI also has several functions, among others:
- As a standard reference and tool for coordination, integration, and synchronization of statistical implementation
- Determination of the qualification of the type of business activity in the application letter for Tanda Daftar Perusahaan (TDP) and Surat Izin Usaha Perdagangan (SIUP)
- Monitoring and evaluation of economic achievements such as Gross Domestic Product (GDP)
- Determining investment licenses or investments that may be made
- Business identification for taxpayer registration
Business Temporarily Stopped, Need to Delete KBLI in OSS?
In terms of determining whether business activities that are off production and temporarily stop need to remove KBLI or not, it can be seen from the legal aspects and business plan. Here are what can be considered in this matter:
- If licenses are difficult to obtain and costly
If the license is difficult to obtain and the process is costly, and in the business plan the business continues commercial activities in the next 1-2 years, it is recommended that the license not be revoked.
However, the explanation above has consequences, namely that business actors or companies must still report all mandatory reports related to the KBLI, such as the National Industrial Information System (SIINAS), Electronic Reporting System for Environmental Licensing for Businesses and / or Activities (SIMPEL), Investment Activity Reports (LKPM), SiRaja Limbah, and so on.
Even though it may only be with a nil statement, reporting is still mandatory.
- If the license is related to PB-UMKU
In the event that the license is not costly, easy to obtain, there are many related Business Licenses to Support Business Activities (PB-UMKU) and from the business plan the business will resume operations in the next 1-2 years, it is recommended not to revoke it. Just like the previous case, all reports must still be reported.
For example, a company operates in wholesale trade (KBLI 46599) with low risk and only has an NIB license. However, there is a PB-UMKU warehouse registration mark (TDG) associated with that KBLI. If the warehouse will continue to be used for wholesale trade of other commodities on a temporary basis, then the license should not be revoked.
- If licenses are easy to obtain
If the license is easy to obtain, without high costs, and there is no PB-UMKU associated with the license, then it is better to revoke the license. The benefit of the revocation is that the company does not need to bother reporting on the license to the relevant agencies.
Procedure to Delete KBLI in OSS and Articles of Association
If a business actor or company intends to delete a KBLI based on the above or other considerations, it can be done in two ways.
First, delete the KBLI that is in the OSS NIB but still listed in the articles of association. Or second, amend the articles of association which means the KBLI in the articles of association.
To delete an existing KBLI on the NIB, business actors can do so through the Revocation or Cancellation Menu in the OSS system.
If the business license of the KBLI has been issued, the deletion is done through the Revocation Menu. Meanwhile, for KBLI whose business license has not been issued, deletion is done through the Cancellation Menu.
For the deletion of KBLI in the articles of association, it is included in the category of changes to the articles of association that require MOLHR approval. Where the amendment to the articles of association is stipulated through the General Meeting of Shareholders (GMS) which is contained or stated in a notarial deed in Indonesian.
The application for amendment of the articles of association shall be submitted to the MOLHR within a maximum period of 30 days as from the date of the notarial deed containing the amendment of the articles of association.
If the time period has passed, the application is not submitted to the MOLHR but electronically through SABH.
Amendments to the articles of association that must be approved by the MOLHR shall take effect on the date of issuance of the Ministerial Decree.
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From the explanations above, it can be concluded that the decision to remove and retain KBLI for business activities temporarily stops depending on the conditions and business plans of each.
If licensing is difficult to obtain and costs a lot of money, then KBLI licensing in OSS should be maintained, and vice versa.
To ensure that the steps taken are suitable for your business needs and conditions, it is important to consider each aspect carefully.
For those of you who need assistance in managing KBLI in OSS and other business licenses, our legality services are ready to help.
As a digital legal platform, we have been trusted by more than thousands of businesses and companies in Indonesia to fulfill business legality needs including KBLI in OSS.
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